The UK Chancellor announced temporary VAT cuts from 20% to 5% on family attractions during school holidays, effective from the end of June to 1 September 2026. Additional measures include free bus journeys for under‑16s in England in August, a 12‑month HGV road tax holiday, and a one‑third reduction in red diesel duty until the end of 2026. Business leaders argue the cuts are insufficient to support hospitality and other sectors.
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The Independent · about 9 hours ago
The UK government will remove VAT from domestic electricity bills from 1 October 2026, cutting the rate from 5% to 0%. The change is expected to save households around £45 a year and will be funded by cancelling the Digital ID programme.
The Independent · about 11 hours ago
In the UK, the government announced an £850 million tax cut on energy bills, making electricity bills VAT free from 1 October 2026 in England, Scotland and Wales. Northern Ireland remains exempt because EU VAT rates apply under the Windsor Framework, preventing the cut from applying there.
BBC · about 16 hours ago
UK VAT will be cut from household electricity bills from 1 October, reducing the rate from 5% to zero and saving households about £45 a year. The cut is funded by savings from scrapping the digital ID programme and will apply to England, Scotland and Wales, with equivalent funding for Northern Ireland.
The Independent · about 16 hours ago
UK households will see 5% VAT removed from electricity bills from 1 October 2026, a move announced by Prime Minister Andy Burnham. The change is expected to save about £45 on a typical annual bill, though a projected 3.1% rise in the price cap may offset the benefit.
Yahoo News Canada · about 20 hours ago
The United Kingdom will see VAT on household electricity removed from 5% to 0% on 1 October, saving typical homes around £45 a year.
Law360 · about 20 hours ago
UK court rules that Staffing Co cannot recover input VAT because its director knew or should have known its supply chain was compromised by fraud. The decision underscores the importance of due diligence in supply chain management for VAT recovery.
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Key Takeaways
From the end of June 2026 (when Scottish schools break up) until 1 September 2026 (when children return to classrooms in England, Wales and Northern Ireland).
The rate is reduced from 20% to 5% during the specified period.
They are available in August 2026.
The duty reduction applies until 31 December 2026.
It is a 12‑month holiday starting from the announcement in May 2026.
Primary source
Read the full article at Greater Birmingham Chambers of CommerceThis summary was published on VATfaqs.com on 23 May 2026. It relates to VAT developments in United Kingdom. The original source is Greater Birmingham Chambers of Commerce.
